Nearly everyone complains about inflation. As we all know, costs for most items increase over time. However, time can also have a positive impact on our finances. Over time, our savings and investments appreciate, and our objective is always for the rate of this appreciation to exceed the inflation rate.
In addition to our investments, our income also typically increases over time. This could take the form of raises for wage earners, or increased revenues for contractors and business owners. As with our investments, our hope is that our wage and income growth outpace inflation. The net growth factoring in both sides of this equation is often referred to as “real wage growth”.
When planning for the future – especially retirement – it is helpful to understand what your income might be at the time of retirementGaining an estimate of this figure is an important component of preparing your retirement plan.
VisualCalc’s Income Growth Calculator helps you estimate what your income will be at the time of your retirement. The calculator enables you to input different expected annual raises, and then see the impact this has on your future income.
